The Texas Oil and Gas Association (TXOGA) recently released their 2020 Energy & Economic Impact Report which highlighted the extensive economic contributions of the industry, namely, their role in contributing nearly $14 billion in state and local taxes and state royalties in FY 2020. This equates to more than $38 million each day.
These funds are more important than ever before, given the widespread impact of the COVID-induced economic downturn. These funds benefit every Texan, as they are used to pay for and improve schools, universities, roads, and first responders and essentials services.
Even more impressive, TXOGA reports the Texas oil and natural gas industry has paid more than $162.9 billion in state and local taxes and state royalties since 2007, when TXOGA first started compiling this data. This also doesn’t include the hundreds of billions of dollars in payroll for some of the highest paying jobs in the state and economic ripple effect of the industry on other sectors of the economy.
Increased calls for the phase out of oil and gas in favor of an entirely-renewable grid overlooks these critical economic benefits, and the broader role the industry plays. As the TXOGA report notes:
Nearly every in-demand product we need to be safe and to save lives – from face shields and other PPE to ventilators and hand sanitizers – is made from oil and natural gas. Products and services that power our economy and keep life moving – from computers and high-speed internet connections to food deliveries and virtual celebrations – are all made possible because of oil and natural gas. In fact, even before the pandemic, 96% of products we use every day like pharmaceuticals, electronics, cosmetics and clothing are all made from oil and natural gas.
An all-of-the-above energy strategy that welcomes investment in renewable energy sources, but recognizes the crucial role of oil and gas, is key to our nation’s future economic success.